Teleflex Announces Intent to Separate into Two Publicly Traded Companies

Core Viewpoint - Teleflex Incorporated plans to separate its Urology, Acute Care, and OEM businesses into a new independent publicly traded company, referred to as NewCo, through a tax-free distribution of newly issued shares to shareholders, expected to be completed by mid-2026 [1][5][13]. Group 1: Separation Details - The separation is driven by active portfolio management aimed at enhancing shareholder value and will allow RemainCo to focus on high-growth, hospital-centric end markets [2][5]. - RemainCo is projected to generate approximately $2.1 billion in revenue for 2024 and is expected to achieve constant currency revenue growth of over 6$1.4 billion in 2024 and a mid-50% adjusted gross margin profile [10][11]. - NewCo anticipates low-single digit constant currency revenue growth, with potential for improvement as specific product lines recover and expand [11]. Group 3: Management and Financial Strategy - Liam Kelly will continue to lead RemainCo as its Chairman, President, and CEO [9]. - RemainCo aims for double-digit EPS growth in the first full year following the separation and plans to maintain a net leverage ratio below 3.0x through 2026 [7][8]. - NewCo will initiate an executive search for key management positions to ensure focused leadership in its specialized markets [12].